Zambian insurer, Prima Reinsurance Plc has planned to raise approximately USD4 million by the end of this year. This will be done through an initial public offering, Zambia's first IPO since 2008.
The net proceeds of the IPO will be used to meet Zambian government's higher minimum capital requirements. The initial public offering also allowed Prima Re to incur higher risks on larger deals said Chairman David Kombe on a phone interview today. He added that an increased potential in the market was seen in Africa as more people started appreciating the value of having insurance. Further, Kombe said that Africa has been known to rely on European reinsurance services and now is the best time to try and dive into risks within the African region.
According to the African Insurance Organization, Africa has less than 10% of the minimum insurance density per capita worldwide. Prima has already engaged in business in countries including Egypt, Mozambique, Uganda and Sudan said Kombe.
The CEO of the region's Securities and Exchange Commission, Wala Chabala said that the last listing on the Lusaka Stock Exchange was done in November of 2008 when Zambia National Commercial Bank Plc went public. He said through a phone interview from Johannesburg that the IPO was the first a after long period of years.
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